Central Counterparties from the Islamic Finance' Perspective
The paper focuses on central counterparties (CCPs) becoming the buyer to every seller and the seller to every buyer and thereby ensuring the performance of open contracts. The role of CCPs increased considerably after outbreak of the crisis in 2008. In 2012 BIS and IOSCO published the Principles for financial market (post-trade) infrastructures. The aim of the paper is to find out whether, and if yes - to what extent, the mentioned principles have to be modified when applied to CCP serving Islamic financial institutions. It seems that all principles are appropriate for Islamic finance, however some of them should be modified in order to be Shariacompliant. Moreover, in some cases the modification might also be dificult due to lack of standardized instruments. (original abstract)
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